An MNE May Cross List Its Shares on a Foreign

question 90

Multiple Choice

An MNE may cross list its shares on a foreign stock exchange so that it can

• A) create a secondary market so that shares may be used to compensate top local managers.
• B) create a secondary market so that shares can be used to acquire local firms.
• C) increase the firm's visibility to its customers and employees.
• D) accomplish all of the above.

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Definitions:

Convergent Boundary

A region where two or more tectonic plates are moving toward each other, often causing one plate to slide beneath the other.

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, leading to volcanic activity, earthquakes, and the formation of mountain ranges and oceanic trenches.

Andesite

A volcanic rock of intermediate composition, typically grey or bluish-grey, composed mainly of plagioclase and one or more mafic minerals.

Composite Volcanoes

Also known as stratovolcanoes, are large, symmetrical volcanoes composed of alternating layers of explosive ash and lava flows, often characterized by a conical shape.